SINGAPORE: CBOT wheat may retest a support at $6.58 per bushel, a break below which could cause a fall to the May 26 low of $6.39-1/2.

The bounce triggered by this support failed to extend above a falling channel. The downtrend in the channel remains steady and is extending towards $6.39-1/2 to $6.48-1/2 range.

A small double-top forming around $7.03-1/2 suggests a target of $6.39-1/2. Resistance is at $6.79, a break above which may lead to a gain to $6.88-1/4 to $7.03-1/2 range.

On the daily chart, the downtrend from the May 7 high of $7.67-1/2 seems to have resumed.

After piercing below a support zone of $6.59-3/4 to $6.65, wheat approached it again. Chances are it may break this zone and fall towards the next support range of $6.32-3/4 to $6.34.

The reversal of the uptrend from $4.96-1/4 has been more or less confirmed.

The current drop is highly likely to extend to $5.92-1/4, the bottom of the wave B.

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